“Footsie’s” $116,000,000,000 stock market decline!

Londons leading stock index the FTSE [footsie] declined 323.5 points or 5.5%.  That is the biggest 1 day loss since the September 2001 attacks.  Some people are calling today “Black Monday.”  The crash is being blamed on fears of a recession and a lack of confindence in the US Economy and the presidents stimulus plan.  Tommorrow could be a very bad day for the NYSE if the sell off continues.  Usually when investors pull their capital out of the stock market they invest in lower risk “more secure” bonds.  The increased demand for bonds leads to higher price which leads to lower rates on mortgages secured by these bonds.  We will be anxiously awaiting the opening bell tomorrow morning.